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Shares in technology company Oracle<\/a> have fallen by more than 50% from last year\u2019s record.<\/p>\n As Bloomberg News reported<\/a> Thursday (Jan. 29), the decline is happening as investors shed the stock over fears about the artificial intelligence (AI) market and the company\u2019s ties to OpenAI<\/a>.<\/p>\n The downturn wiped out around $463 billion in market value from a record reached in September, after the company\u2019s outlook for its cloud unit signaled steep demand for AI. Oracle\u2019s valuation jumped to $933 billion, the report added, making\u00a0 it the 10th most valuable publicly-traded American company at the time.<\/p>\n The report noted that this decline has been boosted by rising concern among investors about AI spending among tech giants<\/a> without an obvious path to return on investment. There are also worries about the \u201ccircular deals\u201d between the unprofitable startup OpenAI<\/a> and companies like Oracle and Nvidia<\/a>, Bloomberg added.<\/p>\n \u201cThere\u2019s some assumptions built in here about what OpenAI is going to spend and where are they getting that money<\/a> and, you know, is this really going to happen,\u201d Eric Diton<\/a>, president and managing director of investor advisory firm Wealth Alliance<\/a>, told Bloomberg.\u00a0\u201cMaybe Oracle stock got way ahead of fundamentals and now the market\u2019s saying, alright, show me, I wanna see it.\u201d<\/p>\n The news comes weeks after Oracle was sued by bondholders<\/a> who claim the company made false and misleading statements in the offering documents for an $18 billion debt sale.<\/p>\n Advertisement: Scroll to Continue<\/p>\n<\/div>\n The proposed class action lawsuit includes investors who purchased $18 billion of notes and bonds issued by Oracle in September after the company announced it had landed a $300 billion<\/a>, five-year contract to supply computing power to OpenAI.<\/p>\n The suit alleges these investors suffered losses when \u2014 weeks later \u2014 Oracle sought $38 billion of loans to fund data centers to support that agreement. This caused prices to drop and yields to climb as investors perceived greater credit risk, the suit said. Oracle has declined to comment on the litigation.<\/p>\n